President Trump signed an executive order in 2018 that will bring significant changes to short-term health insurance in 2019. These changes are intended to give more options for health insurance to those that do not want to pay for ACA health coverage. One of the major changes coming to short-term coverage is it will now be able to be purchased in durations of up to 364 days. These plans will be able to be renewed for up to three years of continuous coverage. Another major change coming to short-term plans is that carriers will be required to provide information about how the short-term health insurance policies differ from their long-term counterparts. These changes will allow policy holders more time to find long-term plans that are right for them as well as provide more information to them about the policies.
The federal mandate for having health insurance will be eliminated in 2019. This means that those do not meet the ACA minimum required coverage will no longer have to pay a 2% income tax fee. However, those that did not meet the requirements for health insurance will still have to pay the tax fee on their 2019 tax return. The current federal tax penalty for those without a long-term plan is 2% of your income or $695 per adult in the household that is not covered.